His life’s work was looking at retirement from every angle and seeking that “ah-ha!” moment that suddenly clarifies the big picture.

One of these “ah-ha” moments was looking at retirement planning as a 10-year period, the five years before and after retirement. This could determine how long your money will last.

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Many people are still increasing their incomes, and major expenses such as college and mortgages no longer exist for those in older age brackets. Still, some continue supporting family members.

But just barely visible behind the mist of euphoria lurks a potential problem — lifestyle creep. You decide to spend the surplus instead of using it for savings and investments. You decide to make dramatic improvements in your lifestyle — new cars, more vacations, a second home, etc.

According to Stein, lifestyle creep not only reduces or eliminates the ability to make dramatic additions to retirement capital, but it also increases the cost of retirement. In the typical cycle of retirement planning, this gets translated into an imperative to postpone retirement for a few years. He says if lifestyle expenditures increase in the years just before retirement, they tend to increase the required budget throughout most of retirement.

The important decision that needs to be made is how you will allocate these surplus funds between savings and investments on one hand and improve lifestyle on the other.

There are other issues to deal with, such as increased longevity, medical care, desire to leave an inheritance and, possibly, a need for long-term care.

To make the “right decision” is to understand the full implications of these decisions.

The key to capturing the full potential of this complicated, very long and expensive retirement is to create a financial plan, which should be reviewed regularly. It will help you in many ways, determining what you can do for yourself and family members. Should you take the big family trip? Is paying for educational expenses for your children or grandchildren affordable?

While lifestyle creep can threaten your retirement, financial planning is the secret to managing it.

Alan P. Weiss is the president of Regent Wealth Management Group in Woodbridge. He is also a CERTIFIED FINANCIAL PLANNER™. Readers are reminded that certain investments and investment strategies may not be appropriate for them and that all investments involve risks and uncertainties. Consult an expert of your choosing if you have questions about investments. More information is available at www.regentwealth.com.